Amazon Stock Shares Crater After Sales Miss And Lower Guidance

Published 02/05/2017, 02:11 AM
Updated 03/09/2019, 08:30 AM
AMZN
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Amazon.com Inc (NASDAQ:AMZN)

Amazon Stock Earnings Data

On Thursday after the close, Amazon stock prices took a major dip after the company announced fourth quarter earnings that missed analyst expectations. They announced adjusted earnings per share to the tune of $1.54 on $43.7 billion while analysts were looking for $1.37 earnings per share on $44.7 billion revenue. Despite missing on sale numbers, Amazon.com announced their best ever holiday sales numbers.

Amazon came out with first quarter guidance numbers that came in below analyst expectations which helped fuel the sell-off in the post market session. Shares are down just over 4% heading into the open.

AMZN Technicals

AMZN 5 Minute Chart

As you can see in the 5-minute chart above, Amazon stock did a nose dive to the low $800’s before stabling off. $800 has historically been a key pivot level and will be a level that traders will be watching on Friday. Also keep an eye on $780 and $757.94 where the 200-day moving average currently sits. We should see some resistance at $820 and $815.

Currently analysts have an average price target of $941.68 but we could see that lowered over the following days.

CEO Comments

Jeff Bezos, Amazon founder and CEO said,

Our Prime team’s customer obsession kept them busy in 2016. Prime members can now choose from over 50 million items with free two-day shipping — up 73% since 2015. Prime Video is now available in more than 200 countries and territories. Prime Now added 18 new cities, which means millions more members now get one and two hour delivery. New benefits were also added to the list, like Prime Reading, Audible Channels for Prime, Twitch Prime and more. And customers noticed — tens of millions of new paid members joined the program in just this past year.

Company Profile

Amazon.com, Inc. provides online retail shopping services. It provides services to four primary customer sets: consumers, sellers, enterprises, and content creators. The company also provides other marketing and promotional services, such as online advertising and co-branded credit card agreements.

It serves consumers through its retail websites with a focus on selection, price, and convenience. It designs its websites to enable its products to be sold by the company and by third parties across dozens of product categories. The company also serves developers and enterprises of all sizes through Amazon Web Services, which provides access to technology infrastructure that enables virtually any type of business. The company operates through three segments: North America, International, and Amazon Web Services. The North America segment includes retail sales of consumer products and subscriptions through North America-focused websites such as www.amazon.com and www.amazon.ca.

The International segment includes retail sales of consumer products and subscriptions through internationally-focused websites. The Amazon Web Services segment includes global sales of compute, storage, database, and other AWS service offerings for start-ups, enterprises, government agencies, and academic institutions. Amazon.com was founded by Jeffrey P. Bezos in July 1994 and is headquartered in Seattle, WA.

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